2017/8/13 15:12:12 0次
Root's business is lending to the owners of small farms in poor countries. An estimated 450m of these smallholdings exist worldwide, typically providing a subsistence—at—best income for more than 2 billion of the poorest people on the planet. Mainstream finance has largely ignored them. They face multiple hardships, including lof poor quality. a lack of infrastructure to get their output to market the constant threat of being wiped out by extreme weather. The lack of access to credit for working capital investment makes a bad situation worse.
Microcredit outfits dealing in tiny loans of tens or hundreds of dollars have proved that the poorest of the poor can be perfectly responsible borrowers. Root a few other specialist lenders are showing the same is true of bigger loans to groups of subsistence farmers. The company says that less than 3% of its loans go bad, a failure rate that would be impressive even among much richer clients.
The loans, which come with free advice training in how best to use the money, are helping farmers increase their productivity so boost their incomes. The money also protects farmers from having to sell their wares cheaply to the first available buyer. More than half of Root's borrowers see their income increase by at least 20% a year after receiving a loan; it rises by over 50% for nearly a third of them.
Root has been growing fast, especially since it beefed up its eight offices in poor countries. It has supplied its mixture of credit technical advice to some 550 borrowers, mostly co—operatives that aggregate the harvests of smallholders. In February its portfolio of loans reached $100m for the first time. Later this year the cumulative total of loans it has made since 1999 should pass S1 billion.
Root itself is a non—profit that has relied on grants for much of its funding. Mr Foote plans to keep it that way. leaving it to commercial lenders to scale up the business of lending to smallholder exporters. Now that Root has shown that the business is viable, he believes, private investors will pile in. Most of Root's loans of S350.000 or more (around 25% of its portfolio) are profitable at interest rates of no more than 13% a year (well below what microcredit lenders typically charge). Dalberg. a consultancy, reckons the potential market for this kind of lending is $22 billion, based on the 10% of smallholder farmers who are part of some sort of collective sales organisation.
Currently, only around $10 billion of this demis met. mostly by regional development banks that tend to grant heavily subsidised loans directly to individual farmers. Root six other similar but smaller farm—loan firms together supply around S350m in credit. In the next five years, it expects that to rise by over 50%. as more private capital enters the market.
As for Root itself, it will start lending to small farmers who sell their crops locally. Mr Foote hopes to show that they are good borrowers too—something he thinks that is best done as a non—profit. Root does not intend to follow the path trodden by microcredit pioneers such as Banco Compartamos in Mexico, which embraced the idea of profits went on to have a lucrative IPO. He sees Root's job as seeding markets, leaving others to reap the harvest.
1、What does the underlined word "smallholding" in the first paragraph refer to? ( )
A. Lenders like Root.
B. Small farms.
C. Small companies.
D. Places holding the poorest people.
2、Which one of the following is not the benefit that comes with the loan? ( )
A. Increase of productivity.
B. Raise of income.
C. Free advice training.
D. Turning from a borrower to a lender.
3、According to the passage, which one of the following statements is false? ( )
A. Poor people are not less responsible than rich people as borrowers.
B. Without the loans, die poor may get poorer.
C. It is estimated that about 12 billion of demin this kind of credit is not met.
D. Private investors will plunge into the lending market narrow the market share of Root.
4、The last sentence in the last paragraph tells us that ( ).
A. Root has set a very good example for other microcredit lenders to follow make profit.
B. Root will expthe market to ensure the farmers' harvest.
C. Root will not compete with other microcredit lenders will leave profit to them.
D. Root will remain non—profit to help the poor let them enjoy the harvest.
5、What is the main idea of this passage? ( )
A. The poor should not be ignored by mainstream finance.
B. Root proves that lending to the rural poor is safe profitable.
C. Root's development its vision.
D. The poor has improved their life with the micro credit.
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